By John Campbell
If you’re desperate for cash and are considering taking out an auto title loan, you may want to consider an alternate source of funds. Otherwise, you could be putting your automobile and your livelihood at risk.
Where you may look will, in part, be determined by how soon you need the money. If you need money right now you may have some potential funding sources you haven’t even considered.
Depending on your circumstances, you may want to consider asking a close friend or relative if you can borrow the funds you need. This may be the last thing you’d ever want to do but could actually be the most sensible thing to do. A friend or relative may be much more sympathetic to your situation than many lending institutions would be. They may also offer you much more flexible repayment terms and be less likely to charge you interest if they know you’re in a desperate situation. The worst they can do is say no.
If you’re on excellent terms with your employer you could even ask for an advance on your next paycheck. You may be pleasantly surprised at how willing your employer may be to help you out. You may not even have to pay any interest on the advance with many employers. As long as you don’t make a habit of asking for advances all the time your employer may be eager to give you a helping hand. After all, happy employees tend to be loyal and productive employees.
If you have any credit cards that aren’t close to or over their credit limit you could simply “charge it.” If you’re stuck in a situation in which you need real cash you can always look into obtaining a cash advance off your card. You may be able to get cash from an ATM if your card has a built in cash advance feature. If you happen to have any unused credit card cash advance checks lying around, those could also be used in place of cash. You may pay a higher interest rate on a credit card cash advance than you would on purchases, however.
If you know you’re going to need some extra money very soon but don’t have an immediate need for extra funds, you can always try to qualify for a small loan from a local credit union or bank. Although credit unions typically offer their members loans with lower interest rates, you may not qualify for membership at certain credit unions. Banks may offer a number of excellent small loan packages that could help you get through a temporary financial hardship. Depending on your credit score, you may or may not qualify for a small loan.
If you’re in any branch of the armed services, you may qualify for very low or no interest rate loans in case of an emergency. The Navy-Marine Corps Relief Society has established offices throughout the country that are ready to serve the funding needs of our active duty or retired servicemen and women. This organization also has grant money available to those who qualify.
If you can’t borrow money from someone or get a traditional loan, you should look into getting a cash advance before seeking out an auto title loan. You will still be responsible for paying some hefty interest rates if you end up rolling over the loan but you won’t have the added risk of losing your automobile hanging over your head.
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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances. This article may be reprinted on your Web site if the copyright, author information and active link are included.
